Alcon upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Alcon to Equal Weight from Underweight with a price target of $85, up from $65. The firm’s prior downgrade of the stock was predicated on a sluggish U.S. premium IOL market, and while that risk remains, “there can be no doubt” that Alcon has found other factors that have more than offset the risk, diminishing the bear case, the analyst tells investors. The firm also flags the recent unsubstantiated reports from Betaville and Street Insider of acquisition interest by Alcon, adding that while M&A is “always an upside risk potential,” it thinks likely margin dilution and lack of visibility in China “makes for a lower risk” in that regard.